New insights on the relationship between the involvement of countries in global value chains, and intra- and inter-country inequalities

Duarte, Rosa; Espinosa‐Gracia, Adrián; Jiménez, Sofía; Chóliz, Julio Sánchez

doi:10.1016/j.strueco.2022.11.001

Cited by 10 publications

(5 citation statements)

References 51 publications

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“…Admittedly, this is one possibility among many. For instance, U-shaped (Duarte et al, 2022;Stöllinger, 2021) and inverted U-shaped curves (Kitsos et al, 2023) are also used to model regional economic dynamics.…”

Section: Open Debates On Curve Shapes and Parametersmentioning

confidence: 99%

A reformulation of the FLQ approach to computing regional input-output coefficients

Flegg,

Pereira-López,

Sánchez-Chóez

et al. 2024

Preprint

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In this paper, we examine alternative methods of computing regional input−output (IO) coefficients, with an emphasis on their relative accuracy and the complexity of the computations required. We propose a novel way of implementing the well-known FLQ (Flegg’s location quotient) approach. Although the FLQ formula often yields very satisfactory results, the need to specify values of the unknown parameter δ in this formula presents an obstacle to its implementation. Here we develop a fresh approach to the use of the FLQ that substantially simplifies its application, while simultaneously enhancing its performance. We focus on how regional size, R, is incorporated in this formula and simplify the way in which R affects the allowance made for imports from other regions. We call this new formula the reformulated FLQ or RFLQ. We also show how the unknown parameter in the RFLQ can be computed. We test our proposal using the 2005 and 2015 Korean survey-based interregional IO datasets and contrast our estimates with both survey-based values and the results from several other techniques. We also examine two different information scenarios: with and without industry-specific information. The results suggest that the RFLQ can yield more accurate estimates of regional IO coefficients, and in a more straightforward way, than is possible with the traditional FLQ.

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Section: Open Debates On Curve Shapes and Parametersmentioning

confidence: 99%

A reformulation of the FLQ approach to computing regional input-output coefficients

Flegg,

Pereira-López,

Sánchez-Chóez

et al. 2024

Preprint

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show abstract

“…In this work, we follow Bolea et al (2022) who defined the participation of a region in GVCs as the portion of the total VA that is embodied-exported and modified the version of Los et al (2015), where the participation of a region in GVCs is defined as the share of value added embodiment (VAE) in exports over the world total. The version of Bolea et al (2022) takes into account the region's size (Duarte et al, 2022;Espinosa-Gracia et al, 2023), and we consider it more useful for our purpose.…”

Section: Io Modelling and Gvcs' Participationmentioning

confidence: 99%

The European regions in the global value chains: New results with new data

Almazán‐Gómez,

Llano,

Pérez

et al. 2023

Papers in Regional Science

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This article contains the methodology and main results related to the update and extension of the widest Interregional Input‐Output Tables for the entire EU27, UK and the EFTA countries. This work gives continuation to the outstanding effort developed in the last years regarding the estimation and analysis of different Multi‐Regional Input‐Output (MRIO) databases at the country level (WIOD, EXIOBASE, ICIO, FIGARO, etc), and the MRIO tables developed for the EU at the NUTS2 level. The main contribution consists of updating and extending the current EUREGIO collection to obtain an EUREGIO table for 2017, which will be referred to the regions (NUTS‐2 Rev.2016) for all the EU27+UK+EFTA countries and will be embedded in the new FIGARO multi‐country 2017. Such effort was developed in the context of the ESPON‐IRIE project. This article summarizes the methodology used and compares the results obtained with the ones of the main benchmarks, providing an analysis about the national and regional participation in the Global Value Chains (GVCs). Main results suggest that, on average, 65% of value added is embodied in the goods and services sold to the same NUTS‐2 region, 16% is embodied in the ones sold to regions in the same country, and the remaining 20% is exported (to other countries). Exploring the heterogeneity within these figures also can be seen that the variety is higher across regions than across sectors. Our analysis suggests that, to a large extent, the heterogeneous participation of EU27+UK+EFTA regions in the GVCs is explained by their sectoral structure, more than by the regional idiosyncratic characteristics. Such results open the floor for the correct design of industrial policies, embedded in the smart specialization paradigm.

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“…In this line, previous studies showed that GVC-induced economic and social upgrading and downgrading may coexist within a given country (Barrientos et al, 2016). Other studies showed that the impact of GVCs participation on within-country inequalities are heterogeneous over time (Carpa and Martínez-Zarzoso, 2022) and across different positions along the value chain (Duarte et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

At the territorial roots of global processes: Heterogeneous modes of regional involvement in Global Value Chains

Capello,

Dellisanti,

Perucca

2023

Environ Plan A

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Despite the large evidence of the recent globalization phenomenon at national level, very little is known about the involvement of regional economies in Global Value Chains (GVCs). Instead, the regional dimension of GVCs is of primary importance since regions require an absolute advantage to be part of an international production chain. It can in fact be easily the case that within the same country both the participation and the gains from GVCs strongly differ among regions. In going to the territorial roots of GVCs, the paper aims to conceptualize a taxonomy of different modes in which regions can be involved in GVCs, based on different intensity of participation and rewarding conditions. Based on regional trade in value added matrices, the taxonomy is applied to the manufacturing sector at NUTS2 regions in Europe, combining two indicators of regional participation and ‘terms of trade’ imposed in the chain. Although national patterns are visible, and a clear divide between Eastern and Western Europe emerges, the modes of involvement are highly diversified within countries. Moreover, through a multinomial logit model, the local characteristics associated with the different roles that regions can have within GVCs are looked for. Their identification has far-reaching normative consequences that intervene in the capacity of regions to gain from participation in GVCs, and to mitigate the interregional income distribution effects that this involvement may cause.

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New insights on the relationship between the involvement of countries in global value chains, and intra- and inter-country inequalities

Cited by 10 publications

References 51 publications

A reformulation of the FLQ approach to computing regional input-output coefficients

A reformulation of the FLQ approach to computing regional input-output coefficients

The European regions in the global value chains: New results with new data

At the territorial roots of global processes: Heterogeneous modes of regional involvement in Global Value Chains

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